Firm says housebuilders slowing down buying up plots because of stagnating demand
Henry Boot has said that it expects full year profits to be “significantly below current market expectations” blaming falling land sales and a sluggish performance from its housing business.
The firm, which sold its construction business at the end of last year to an MBO, said land sales fell by more than in the six months to June from 1,222 to 556.
It added: “A number of home builders have changed their land strategy, slowing acquisition activity, which has resulted in delays to transactions and an increased use of deferred payment terms. Given current market dynamics, we expect 2026 plot sales to be materially below the prior year (FY25: 3,957).”
Boot had been expecting pre-tax profit this year of just above £20m but the firm said it would miss this target with its Stonebridge Homes business expected to rack up an operating loss in 2026 as the firm battles increased construction costs and higher mortgage rates hitting consumer demand.
It said net debt at the end of last month was up to £133m from £108m at the year-end in 2025 but added that it expected this to fall by the end of 2026.
The firm will announce its half-year results to June on 22 September
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